INTERNATIONAL INDIAN SCHOOL RIYADH

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1 INTERNATIONAL INDIAN SCHOOL RIYADH ACCOUNTANCY WORK SHEET 8 CLASS 11 CHAPTER: FINANCIAL STATEMENTS Q.1 Find out (a) Cost of goods sold (b) Closing Stock. Opening Stock 15,000 Sales 1350,000 Purchases 1050,000 Return Outwards 10,000 Carriage 18,000 Return Inwards 12,000 Gross profit 200,000 (March Marks 2+2=4) Q.2 (a) Pass adjusting journal entries for the following. (i) Interest on Capital (ii) Manager s Commission (b) Distinguish between Capital Expenditure and Revenue Expenditure. (March Marks 2+2) Q.3 Calculate: (a) COGS (b) Gross Profit for the following information. Opening Stock 10,000 Administration Expenses 10,500 Closing Stock 15,000 Selling & Distribution Expenses 7,200 Purchases 80,000 Sales 150,000 Purchase Returns 5,000 Sales Return 10,000 Wages 15,000 (March Marks 4) Q.4 On , the following Trail Balance was extracted from the books of a merchant. Dr. Balance Cr. Balance Drawings 3,000 Capital 28,000 Sundry Debtors 20,100 Sundry Creditors 10,401 Interest on loan 300 Loan on Mortgage 9,500 Cash in hand 2,050 Bad debts Reserve 710 Stock ( ) 6,839 Sales 110,243 Motor Vehicles 10,000 Purchase returns 1,346 Cash at bank 3,555 Discounts 540 Land & buildings 12,000 Bills payable 2,614 Bad debts 525 Rent received 250 Purchases 66,458 Sales Returns 7,821 Carriage outward 2,404 Carriage inward 2,929 1

2 Salaries 9,097 Rates, Taxes and insurance 2,891 Advertising 3,264 General Expenses 3,489 Bills Receivable 6,882 Prepare Trading and Profit and Loss account for the year ended , and balance Sheet as on that date, after making adjustments for the following matters 1. Depreciate Land and Building at 2.5% and motor vehicles at 20%. 2. Interested on Loan at 6% p.a. is unpaid for six months. 3. Goods costing 500 were sent to customer on sale or return for 600 on 30 th December, 2003, and had been recorded in the books as actual sales. 4. Salaries amounting to 750 and rates amounting to 350 are outstanding. 5. Prepaid insurance amounted to Provision for Bad debts is to be maintained at 5% on Sundry Debtors. 7. Provide for Manager s commission at 10% on net profits after charging such commission. 8. Stock in hand on was valued at 6,250. (March Marks 13) Q.5 From the following information prepare the Final Accounts for the year ending on 31 st March 2005: Particulars () Particulars () Drawings 20,000 Sales 138,000 Sundry Debtors 40,000 Bills Payable 7,700 Bad Debts 1,500 Sundry Creditors 30,000 Trade Expenses 1,200 Provision for doubtful 2,000 debts Printing & Stationary 1,000 Return Outwards 1,000 Rent, Rates & Taxes 5,000 Capital 100,000 Freight 2,000 Cash at Bank 12,000 Furniture & Fixtures 10,000 Bills Receivables 7,000 Return Inwards 2,000 Discount allowed 1,000 Purchases 90,000 Wages 5,000 Opening Stock 25,000 Cash in hand 6,000 Plant & Macinery 50,000 Adjustments: (a) The Closing Stock was 45,000 2

3 (b) Provision for doubtful debts is to be maintained at 8% on Sundry Debtors (c) Provide for depreciation on Furniture & Fixtures and Plant & 10% p.a. (d) Machinery costing 20,000 was purchased on 1 st Oct, 2004 (e) A fire broke out on 20 th March, 2005 and stock of 10,000 was destroyed. It was fully insured and the insurance company admitted the claim for 8,500 (March Marks 13) Q.6 The following balances have been extracted from the trial balance of Messrs, Imtiaz Limited. You are required to prepare the Trading and Profit and Loss A/c on March Also prepare Balance Sheet on that date. Opening Stock 6,000 Capital 20,000 Furniture 1,200 Sales 41,300 Drawings 2,800 Purchase return 4,000 Cash in hand 3,000 Bank Overdraft 4,000 Purchase Bad debts provision 400 Sales return Establishment exp. 2,000 4,400 Apprenticeship Premium Commission Carriage inwards 3,000 Creditors 10,000 Bad debts 1,000 Debtors 10,000 Bills Receivable 6,000 Bank deposits 8,000 Wages 1,000 Trade Expenses 500 Bank Charges 400 Salaries 2,000 Insurance 1,500 Postage & Telegram 500 General Expenses 1,000 Rent 2,000 80,300 80,300 Adjustments: 1. Outstanding Salaries Unexpired insurance Further Bad debts amounted Provision for doubtful debts is to be maintained at 5% on debtors. 5. Depreciate furniture at 10%. 3

4 6. Apprenticeship premium received in advance amounted to Closing stock was valued at 9,000 (March Marks 15) (Ans: GP 18,300 NP 5,490 BS 36,890) Q.7 Prepare Final Accounts from the following Trial Balance of Mr. Joshi as on 31 st March 2007 Particulars (Debit Balance) Particulars (Credit Balance) Building 50,000 Capital 80,000 Furniture 8,000 Sales 115,000 10% (1.4.06) Purchases 10,000 82,000 Purchase Returns Sales Tax collected 2,000 4,500 Interest on Investments 500 Opening Stock 15,000 Sundry Creditors 30,000 Sundry Debtors 20,000 Commission 2,000 Wages 1,800 Outstanding salaries 1,000 Rent 6,500 Insurance 22,00 Carriage on purchases 200 Salaries 12,000 Bad Debts 800 Bank 20,000 Cash in Hand 6, , ,000 Additional Information: (i) Closing Stock was valued at 20,000 (ii) Furniture of 4,000 was purchased on 1 st July, (iii) Provide depreciation on 5% and on 10%. (iv) (v) Advance rent for one month has been paid. Provide for Manager s on net profit after charging such commission. (March Marks 16) (Ans: GP 38,000 NP 16,000 BS 132,300 Commission 800) Q.8 The following were the balance extracted from the books of Yogita as on March 31 st Debit Balance Rs Credit Balance Cash in hand 540 Sales 98,780 4

5 Cash at Bank 2,630 Returns outwards 500 Purchases 40,675 Capital 62,000 Returns in wards 680 Sundry Creditors 6,300 Wages 8,480 Rent 9,000 Fuel and Power 4,730 Carriage on Sales 3,200 Carriage on Purchase 2,040 Opening Stock 5,760 Building 32,000 Freehold land 10,000 Machinery 20,000 Salaries 15,000 Patents 7,500 General Expenses 3,000 Insurance 600 Drawings 5,245 Sundry Debtors 14, , ,580 Taking into account the following adjustments. Prepare Trading and Profit and Loss account and balance sheet as on March 31 st 2005: (a) Stock in hand on March 31 st,2005, was 6,800 (b) Machinery is to be depreciated at the rate of 10% and 20%. (c) Salaries for the month of March, 2005 amounting to 1,500 were outstanding. (d) Insurance includes a Premium of 170 on policy expiring on September 30 th,2006. (e) Further bad debts are 725. Create a 5% on debtors. (f) Rent Receivable 1,000. (March Marks 16) (Ans: GP 43,715 NP 25,586 BS 90,141) Q.9 The following information has been extracted from the trial balance of M/s Randhir Transport Corporation. Debit balance Credit balance Opening stock 40,000 Capital 270,000 Rent 2,000 Creditors 50,000 Plant & Machinery 120,000 Bills Payable 50,000 Land & Building 255,000 Loan 110,000 5

6 Power 3,500 Discount 1,500 Purchases 75,000 Sales 150,000 Sales Return 2,500 Provision for bad debts 1,000 Telegram & Postage 400 General reserves 50,000 Wages 4,500 Salary 2,500 Insurance 3,200 Discount 1,000 Repair & Renewals 2,000 Legal Charges 700 Trade taxes 1,200 Debtors 75,000 Investments 65,000 Bad Debts 2,000 Trade Expenses 4,500 Commission 1,250 Travelling Expenses 1,230 Drawings 20, , ,500 Adjustments: 1. Closing stock for the year was 35, Depreciation charges on Plant and 5% and Land and 6%. 3. Interest on 6% and interest on 5%. 4. Interest on 4%. 5. Further bad debts 2,500 and make a provision for bad debts on 5%. You are required to make trading and profit and loss account and a balance sheet on March 31 st (March Marks 16) (Ans: GP 60,000 NP 11,396 BS 525,675) Q.10 The following balances were extracted from the books of Shri Krishna on 31 st December Name of the Account Debit Credit Capital 24,500 Drawing 2,000 General Expenses 2,500 Buildings 11,000 6

7 Machinery 9,340 Stock ( ) 16,200 Power 2,240 Taxes and insurance 1,315 Wages 7,200 Sundry Debtors 6,280 Sundry Creditors 2,500 Charity 105 Bad Debts 550 Bank Overdraft 11,180 Sales 65,360 Purchases 47,000 Scooter 2,000 Bad Debtor Provision 900 Commission 1,320 Trade Expenses 1,780 Bills Payable 3,850 Cash , ,610 (a) Stock on 31 st December, 2004 was valued at 23,500. (b) Write off a further bad debts of 160 and maintain the provision for bad debts at 5% on sundry debtors. (c) Provide 2% for discount on sundry creditors. (d) Depreciation machinery at 10% and scooter by 240. (e) Provide 750 for outstanding interest on Bank overdraft. (f) Prepaid insurance is to be extent of 50. (g) Provide Manager s commission at 10% on the net profit after charging such commission Prepare final accounts for the year ended 31 st December, 2004 giving effect to the above adjustments. (March Marks 16) 7

INDIAN SCHOOL MUSCAT DEPARTMENT OF COMMERCE & HUMANITIES CLASS :11 ACCOUNTANCY Financial Statements of Sole proprietorship

Worksheet No:12 INDIAN SCHOOL MUSCAT DEPARTMENT OF COMMERCE & HUMANITIES CLASS :11 ACCOUNTANCY Financial Statements of Sole proprietorship Issued on : ------------------------- Date of submission:------------------------